Sage 100

I ran across something unusual at a customer recently and I am able to re-create it in the EEC test company in Sage 100.  This is a company that has Job Cost.  In Job Cost > Setup, Cost Code Maintenance.  Choose Cost Code 600-020-000 Maintenance Material.  On the Expense tab, added account 115-00-00 Inventory to Cost Type M Material.  This is so when a PO is entered and a job number and cost code are assigned to the line item the user doesn't get prompted for a GL account.

Entered a PO with 1 line item, quantity 1, cost is $.20.  Did a receipt of goods for the PO.  Did a receipt of invoice quantity 1, cost is $.35.  So I intentionally created a variance.  Below are the journal entries created by Sage 100:

po rog
acct	description		debit	credit
115-00-00	inventory		0.20
205-00-00	purchases clearing			0.20
po roi
205-00-00	purchases clearing		0.35
201-00-00	accounts payable			0.35
po variance
115-00-00	inventory		0.15
205-00-00	purchases clearing			0.15

THe issue I have is with the po variance journal entry.  It should not be debiting inventory.  This entry makes the inventory trial balance out of balance with the GL.  My thought is the debit on the variance should go to the PO variance that is in Product Line Maintenance.  Any thoughts on this?

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Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Chauffeur, Chef, and Personal Assistant to Sprinkles
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You're entering a job number on the PO, right, @Doug Higgs? (LOL - had to type that 3 times, kept coming up with DOG, because you know, it's me the Crazy Dog Lady.)  If so, it really should never be going to Inventory, because you will not be issuing it back out, since it will post directly to the costs of that Job.  Where you entered Inventory for the Cost Code should be a cost account, not the asset account.  And then the posting will be correct because the additional variance will post to the same account.  The only time Inventory should be hit for POs is when they are NOT posting directly to a Job, and will later be issued using IM Transaction Entry.

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Beth Bowers
(269) 358-0989
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@Beth Bowers  "DOG, because you know, it's me the Crazy Dog Lady." LOL !!  I need to do some more research and testing on this.  They do bring the inventory into the warehouse via a PO receipt and it gets put on the job when a $0 SO invoice is updated. The SO invoice has quantity and cost and $0 price,  They have other SO invoices to bill the contract amount (no cost) and these invoices use a "/" misc item code so inventory isn't affected.  When the PO is received the inventory gets updated in the warehouse and the job cost transactions are not affected. They have a lot of enhancements so I am trying to sort out what part of this is off-the-shelf Sage 100 and what is custom. I will report back after I do some more testing.

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Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Chauffeur, Chef, and Personal Assistant to Sprinkles
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Original Message:
Sent: 01-13-2025 13:50
From: Beth Bowers
Subject: PO Variance with Job Cost - DTR / GL Entry Issue

You're entering a job number on the PO, right, @Doug Higgs? (LOL - had to type that 3 times, kept coming up with DOG, because you know, it's me the Crazy Dog Lady.)  If so, it really should never be going to Inventory, because you will not be issuing it back out, since it will post directly to the costs of that Job.  Where you entered Inventory for the Cost Code should be a cost account, not the asset account.  And then the posting will be correct because the additional variance will post to the same account.  The only time Inventory should be hit for POs is when they are NOT posting directly to a Job, and will later be issued using IM Transaction Entry.

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Beth Bowers
(269) 358-0989
------------------------------

Doug

Based on your description of how they are handling costs to the job through invoicing, you don't want to put the job number and cost code on the P/O receipt of goods. When you receive al line on a PO that has a job number and cost code, Inventory is not increased for that item, and the cost goes directly to the job. If you post the cost to the job during ROG and also enter a zero-dollar S/O Invoice to post the cost / item to the job, then the cost would be hitting the job twice (and the item quantity would be negative). 

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David Overholt
DWD Technology Group
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Original Message:
Sent: 01-14-2025 07:50
From: Doug Higgs
Subject: PO Variance with Job Cost - DTR / GL Entry Issue

@Beth Bowers  "DOG, because you know, it's me the Crazy Dog Lady." LOL !!  I need to do some more research and testing on this.  They do bring the inventory into the warehouse via a PO receipt and it gets put on the job when a $0 SO invoice is updated. The SO invoice has quantity and cost and $0 price,  They have other SO invoices to bill the contract amount (no cost) and these invoices use a "/" misc item code so inventory isn't affected.  When the PO is received the inventory gets updated in the warehouse and the job cost transactions are not affected. They have a lot of enhancements so I am trying to sort out what part of this is off-the-shelf Sage 100 and what is custom. I will report back after I do some more testing.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Chauffeur, Chef, and Personal Assistant to Sprinkles
------------------------------


Original Message:
Sent: 01-13-2025 13:50
From: Beth Bowers
Subject: PO Variance with Job Cost - DTR / GL Entry Issue

You're entering a job number on the PO, right, @Doug Higgs? (LOL - had to type that 3 times, kept coming up with DOG, because you know, it's me the Crazy Dog Lady.)  If so, it really should never be going to Inventory, because you will not be issuing it back out, since it will post directly to the costs of that Job.  Where you entered Inventory for the Cost Code should be a cost account, not the asset account.  And then the posting will be correct because the additional variance will post to the same account.  The only time Inventory should be hit for POs is when they are NOT posting directly to a Job, and will later be issued using IM Transaction Entry.

------------------------------
Beth Bowers
(269) 358-0989